Electricity pricing and the willingness to pay for electricity in India

The study sought to understand the viability of on- and off-grid energy solutions and potential uptake for energy solutions in India by assessing: (a) the 'willingness to pay/invest' for energy services; and (b) the commercial viability of business models for both on- and off-grid energy service provisioning.

In particular, the study examined the potential for distributed generation to contribute to energy supply. Further the study aimed to understand the willingness to pay/invest in relation to (a) the nature and scale of energy services offered and (b) the economic value of energy services to end-users.

The specific objectives were to: (1) understand willingness to pay for energy services among rural and urban households; (2) analyse the impact of the nature, scale, and developmental value of the energy service on the willingness to pay, willingness to invest, and the commercial viability of business models; (3) derive lessons on policy, regulation, financial instruments and capacity development to develop and suggest commercially viable models in energy service delivery for rural and urban households and their livelihoods.